- StarHub (SGX:CC3)'s 1Q24 results were within expectations and management full-year guidance. FY24 revenue and EBITDA were 23%/22% of our FY24 estimates.
- Service EBITDA was up 0.7% y-o-y to S$108.4mil excluding D’Crypt which was disposed of in February 2024. Earnings were pulled down by a contraction in mobile and entertainment revenue.
- - Read this at SGinvestors.io -
- Maintain ACCUMULATE with an unchanged StarHub target price of S$1.29.
The Positives
Strong cybersecurity revenue.
- Cybersecurity expanded 37% y-o-y to S$73mil. Excluding D’Crypt, Ensign's revenue would have jumped 54% to S$64.7mil. The surge in revenue was due to project delivery, and 1Q is typically weak on a seasonal basis.
- - Read this at SGinvestors.io -
The Negative
Weakness in mobile APRU.
- StarHub's mobile revenue declined 4.5% to S$145mil. The large drag in revenue stems from lower postpaid ARPU and competition.
- Apart from competition, excess data and voice usage charges have been falling as packages enjoy higher bandwidth.
Outlook
- Read more at SGinvestors.io.
